-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KDKKsAZxrCWSR1HmvHEYW0MFbQPOC04xttG4UOSZG72B11jebyz5UC6hcMWICNBe jTNOSVGlNIOzenubb8khUQ== 0000719241-97-000033.txt : 19970623 0000719241-97-000033.hdr.sgml : 19970623 ACCESSION NUMBER: 0000719241-97-000033 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970620 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CONSECO INC CENTRAL INDEX KEY: 0000719241 STANDARD INDUSTRIAL CLASSIFICATION: ACCIDENT & HEALTH INSURANCE [6321] IRS NUMBER: 351468632 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09250 FILM NUMBER: 97627682 BUSINESS ADDRESS: STREET 1: 11825 N PENNSYLVANIA ST CITY: CARMEL STATE: IN ZIP: 46032 BUSINESS PHONE: 3175736100 MAIL ADDRESS: STREET 1: 11825 N PENNSYLVANIA ST CITY: CARMEL STATE: IN ZIP: 46032 FORMER COMPANY: FORMER CONFORMED NAME: SECURITY NATIONAL OF INDIANA CORP DATE OF NAME CHANGE: 19840207 11-K 1 CONSECOSAVE FORM 11-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 11-K [ x ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED December 31, 1996 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _____________ TO _____________ Commission file number: 1-9250 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: ConsecoSave Plan B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive offices: Conseco, Inc. 11825 North Pennsylvania Street Carmel, Indiana 46032 CONSECOSAVE PLAN INDEX a) Financial Statements Report of Independent Accountants.................................................................... 3 Statement of Net Assets Available for Plan Benefits - December 31, 1996 and 1995..................... 4 Statement of Changes in Net Assets Available for Plan Benefits for the years ended December 31, 1996 and 1995................................................... 5 Notes to Financial Statements........................................................................ 6 Supplemental schedules............................................................................... 13 b) Exhibit 23 Consent of Independent Accountants 2
REPORT OF INDEPENDENT ACCOUNTANTS To the Plan Trustees ConsecoSave Plan Carmel, Indiana We have audited the accompanying statement of net assets available for plan benefits of the ConsecoSave Plan (the "Plan") as of December 31, 1996 and 1995, and the related statement of changes in net assets available for plan benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits of the Plan as of December 31, 1996 and 1995, and the changes in net assets available for plan benefits for the years then ended, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of assets held for investment purposes as of December 31, 1996 and reportable transactions for the year ended December 31, 1996 are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. /s/ COOPERS & LYBRAND L.L.P. --------------------------- Indianapolis, Indiana Coopers & Lybrand L.L.P. June 17, 1997 3 CONSECOSAVE PLAN STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS December 31, 1996 and 1995
1996 1995 ------------ ----------- Assets: Investments in ConsecoSave Trust Portfolios at fair value: Conseco Stock Portfolio (cost: 1996 - $9,578,405; 1995 - $4,615,248) $ 25,259,972 $ 7,601,416 Corporate Bond Portfolio (cost: 1996 - $7,060,964; 1995 - $6,511,148) 7,127,940 6,772,474 Equity Portfolio (cost: 1996 - $30,850,464; 1995 - $20,797,109) 38,008,383 23,845,210 Government Securities Portfolio (cost: 1996 - $4,222,867; 1995 - $4,250,247) 4,213,587 4,431,429 Interest Income Portfolio (cost: 1996 - $18,262,158; 1995 - $21,280,156) 18,262,158 21,280,156 Money Market Portfolio (cost: 1996 - $7,701,476; 1995 - $8,210,626) 7,701,476 8,210,626 S & P 500 Portfolio (cost: 1996 - $3,661,736) 4,044,768 -- BLH Stock Portfolio (cost: 1996 - $831,891; 1995 - $1,293,766) 996,213 1,298,166 CCP Stock Portfolio (cost: 1995 - $5,995) -- 5,995 ------------ ----------- Total investments 105,614,497 73,445,472 Employer contribution receivable 1,827,351 2,810,580 ------------ ----------- Net assets available for plan benefits $107,441,848 $76,256,052 ============ =========== The accompanying notes are an integral part of these financial statements.
4 CONSECOSAVE PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS for the year ended December 31, 1996 and 1995
1996 1995 ------------ ----------- Investment income: Interest and dividends $ 2,757,735 $ 3,267,014 Net realized gains on sales of investments 7,931,279 4,412,796 Net unrealized appreciation in fair value of investments 16,963,359 5,195,745 ------------ ----------- Net investment income 27,652,373 12,875,555 ------------ ----------- Contributions: Employee contributions 10,957,362 9,094,926 Employer contributions 1,827,351 2,810,580 Assets transferred in conjunction with mergers 2,365,171 -- ------------ ----------- Total contributions 15,149,884 11,905,506 ----------- ----------- Deductions: Benefits paid 11,625,239 13,353,410 Custodial fees (Note 1) (8,778) 18,182 ------------ ----------- Total deductions 11,616,461 13,371,592 ------------ ----------- Net increase in net assets available for plan benefits 31,185,796 11,409,469 Net assets available for plan benefits, beginning of year 76,256,052 64,846,583 ------------ ----------- Net assets available for plan benefits, end of year $107,441,848 $76,256,052 ============ =========== The accompanying notes are an integral part of these financial statements.
5 CONSECOSAVE PLAN NOTES TO FINANCIAL STATEMENTS 1. Summary of Significant Accounting Policies The accompanying financial statements of the ConsecoSave Plan (the "Plan") have been prepared in accordance with generally accepted accounting principles. During 1996, the plan sponsor, Conseco, Inc. ("Conseco") acquired American Life Holdings, Inc. ("ALH") and Life Partners Group, Inc. ("LPG") and their 401(k) plans were merged into the Plan. The total 401(k) assets of ALH and LPG prior to their acquisitions were $825,786 and $1,539,385, respectively. Investments The Plan provides the following investment options for voluntary employee contributions: Conseco Stock Portfolio, Corporate Bond Portfolio, Interest Income Portfolio, Equity Portfolio, Money Market Portfolio, Government Securities Portfolio and, new in 1996, the S & P 500 Portfolio. Employer contributions are invested solely in the common stock of Conseco. The Plan's investments, except for the affiliated stocks which are held by the Trustees of the Plan, are maintained under a group annuity contract in a separate account of Bankers National Life Insurance Company ("BNL"), an indirect wholly owned subsidiary of Conseco. Investments in each portfolio are valued monthly at the close of the New York Stock Exchange's last business day. The cost of investments sold is determined on the specific identification basis. Investment transactions are accounted for on the settlement date. The Conseco Stock Portfolio invests in the common stock of Conseco only. The return is based on changes in the market value of Conseco common stock and dividends received, which are reinvested in Conseco common stock. The Conseco common stock is valued at its closing market price on the New York Stock Exchange. The Corporate Bond Portfolio invests in investment-grade and high-yield corporate bonds. Securities for which representative market quotes are readily available are valued at the mid-day mean between the bid and ask prices as quoted by one or more dealers who make a market in such securities. For securities not actively traded, the estimated fair values are determined using values obtained from independent pricing services. The Interest Income Portfolio invests in guaranteed interest contracts issued by life insurance companies. These contracts are carried at their accumulated contract values, which are cost adjusted for interest credited (at a blended rate of 6.45 percent and 6.40 percent at December 31, 1996 and 1995, respectively). Such carrying values approximate fair values. The contracts, interest rates, and expiration dates are as follows: Bankers National Life Insurance Company - 1993 5.35% December 31, 1997 Bankers National Life Insurance Company - 1996 7.00% December 31, 1997 Beneficial Standard Life Insurance Company - 1993 7.05% December 31, 1997 Beneficial Standard Life Insurance Company - 1994 5.00% December 31, 1998 Beneficial Standard Life Insurance Company - 1996 6.00% December 31, 2001 Great American Reserve Insurance Company - 1993 5.35% December 31, 1997 Great American Reserve Insurance Company - 1995 7.45% December 31, 2000 Western National Life Insurance Company - 1993 7.05% December 31, 1997
The Equity Portfolio invests in selected equity securities and other securities having the investment characteristics of common stocks. The equity portion of the portfolio is widely diversified by both industry and number of issuers. Investment opportunities are sought among securities of larger, established companies, although securities of smaller, less well known companies may also be selected. Equity securities traded on a national securities exchange are valued at their closing market prices. Fixed income securities for which representative market quotes are readily available are valued at the mid-day mean between the bid and ask prices as quoted by one or more dealers who make a market in such securities. For fixed income securities not actively traded, the estimated fair values are determined using values obtained from independent pricing services. 6 CONSECOSAVE PLAN NOTES TO FINANCIAL STATEMENTS The Government Securities Portfolio invests in securities issued by the U.S. Government or an agency or instrumentality of the U.S. Government, including mortgage-backed securities. The U.S. Government securities which may be purchased include direct obligations issued by the U.S. Treasury, such as Treasury Bills, certificates of indebtedness, notes and bonds. Securities for which representative market quotes are readily available are valued at the mid-day mean between the bid and ask prices as quoted by one or more dealers who make a market in such securities. For securities not actively traded, the estimated fair values are determined using values obtained from independent pricing services. Short-term investments are carried at amortized cost which approximates fair value. The Money Market Portfolio invests in money market instruments maturing within one year, with an average maturity of 120 days or less. Such investments are carried at amortized cost which approximates fair value. The Standard & Poor's ("S & P") 500 Portfolio, offered beginning in 1996, invests in a Standard and Poor's Depository Receipt, which is a trust traded on the American Stock Exchange under the ticker symbol SPY, that is intended to track the price performance and dividend yield of the S & P 500 index. Prior to August 31, 1995, the CCP Stock Portfolio invested in the common stock of CCP Insurance, Inc. ("CCP") only. The return was based on changes in the market value of CCP common stock and dividends received, which were reinvested in CCP common stock. The CCP common stock was valued at its closing market price on the New York Stock Exchange. As of August 31, 1995, CCP was merged into Conseco. The remaining balance in the CCP Stock Portfolio at December 31, 1995, which consisted of money market funds, was distributed to participants during the second quarter of 1996. The BLH Stock Portfolio invested in the common stock of Bankers Life Holding Corporation ("BLH") only. The return was based on changes in the market value of BLH common stock and dividends received, which were reinvested in BLH common stock. The BLH common stock was valued at its closing market price on the New York Stock Exchange. Effective April 1, 1995, no new contributions were accepted into this portfolio and on December 31, 1996, Conseco completed the purchase of BLH common shares it did not already own in a transaction pursuant to which BLH merged with a wholly owned subsidiary of Conseco (the "BLH Merger"). The shares at December 31, 1996 were converted into Conseco common stock pursuant to the terms of the BLH Merger and the Conseco common stock was deposited in the Conseco Stock Portfolio during the first quarter of 1997. Administrative Expenses Operating expenses and maintenance fees incurred during the years ended December 31, 1996 and 1995, except for investment custodial fees, were paid by Conseco Services, LLC and BNL, respectively, on behalf of the Plan. Future payment of such expenses by Conseco Services, LLC is at Conseco's discretion. During 1996, earnings credits on Plan deposits held by financial institutions exceeded custodial fees incurred. Income Taxes Under Sections 401(a) and 501(a), respectively, of the Internal Revenue Code, the Plan is qualified and the ConsecoSave Trust, a collective trust established under the Plan, is tax-exempt. 2. Plan Description The Plan is a defined contribution plan pursuant to Section 401(k) of the Internal Revenue Code. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"). Established on April 1, 1989, and amended and restated on January 1, 1993 and October 1, 1995, the Plan includes all employees of Conseco and its subsidiaries. Participation is voluntary. Effective July 1, 1995, employees are eligible 7 CONSECOSAVE PLAN NOTES TO FINANCIAL STATEMENTS to become a participant on the first day of the calendar quarter immediately following (1) the employee's date of hire or any calendar quarter thereafter if such employee's customary employment is for at least 1,000 hours of service per year; or (2) the last day of either the employee's initial six-month period of employment or any subsequent six-month period during which the employee completes 500 hours of service, if such employee's customary employment is less than 1,000 hours of service per year. From January 1 through July 1, 1995, employees were eligible to become a participant in the Plan on the first day of the calendar quarter immediately following the employee's date of hire or on the first day of any calendar quarter thereafter. Prior to January 1, 1995, employees who had completed six consecutive months of service were eligible to become a participant in the Plan. Employee contributions to the Plan are made through periodic payroll deductions in increments of 1.0 percent of the participant's annual earnings, not to exceed the lesser of 15.0 percent of the participant's annual earnings or the maximum amount specified by federal tax law ($9,500 for pre-tax contributions for 1996 and $9,240 for 1995). Payroll deductions may be made on a pre-tax and after-tax basis. Participants must contribute at least 5.0 percent pre-tax in order to make concurrent after-tax contributions. Participants designate the portfolios to which their contributions are made. Prior to January 1, 1995, participants were required to contribute at least 4.0 percent pre-tax in order to make concurrent after-tax contributions. During 1996 and the last six months of 1995, Conseco matched 50.0 percent of each participant's pre-tax contributions up to a maximum of 4.0 percent of the participant's annual earnings. During the first six months of 1995, Conseco matched 100.0 percent of each participant's pre-tax contributions up to a maximum of 5.0 percent of the participant's annual earnings. Additional amounts may be contributed by Conseco at the discretion of its Board of Directors. All employer contributions are made to the Conseco Stock Portfolio, which invests solely in Conseco common stock. Such contributions are made no later than the due date for filing Conseco's federal income tax return, including extensions. Participants are immediately vested in their voluntary contributions plus actual earnings thereon. Participants who were in the plan prior to December 31, 1992 have a gradual vesting schedule based upon length of service and are fully vested in Conseco's contributions after five years of service. After that date, participants are still subject to a gradual vesting schedule based upon length of service but are fully vested after six years. The non-vested interests of withdrawn participants are used to reduce Conseco's future contributions. All benefits under the Plan are paid in cash in a lump sum, whole shares of Conseco or BLH common stock, or a combination thereof. A participant may make withdrawals after age 59 1/2, and under certain circumstances are allowed to make hardship withdrawals and after-tax deposit account withdrawals. Participants are permitted to transfer account balances between portfolios quarterly in 1.0 percent increments. Participants may obtain loans up to 50.0 percent of the vested portion of their account balances, excluding employer contributions in the Conseco Stock Portfolio, to a maximum loan of $50,000. Only one loan may be outstanding at a time. Repayment of both principal and interest is made to the participant's account via payroll deduction or a lump sum. The Plan is administered by the Plan Administrator, who is appointed by Conseco's Board of Directors, and who establishes the rules and procedures necessary for the Plan's operations. Although it has not expressed any intent to do so, Conseco has the right to terminate the Plan. In the event the Plan is terminated, each participant's account shall be nonforfeitable with respect to both the participant's and employer's contributions and the net assets shall be set aside for payment to the participants. Distribution shall be made by the Trustee in a lump sum or in substantially equal installments during a period not exceeding one year following such termination. The foregoing description of the Plan provides only limited information. Participants should refer to the Summary Plan Description for a more complete description of the Plan's provisions. 8 CONSECOSAVE PLAN NOTES TO FINANCIAL STATEMENTS - (Continued) 3. Changes in Net Assets Available for Plan Benefits By Portfolio
For the Year Ended December 31, 1996 ---------------------------------------------------------------------------------- Conseco Corporate Government Interest Stock Bond Equity Securities Income Portfolio Portfolio Portfolio Portfolio Portfolio Subtotals (a) --------------------------------------------------------------------------------------- Investment Income: Interest and dividends $ 65,555 $ 497,046 $ 227,694 $ 283,849 $ 1,189,282 $ 2,263,426 Net realized gains on sales of investments 319,196 81,076 7,452,005 37,128 -- 7,889,405 Net unrealized appreciation (depreciation) in fair value of investments 12,695,399 (194,350) 4,109,818 (190,462) -- 16,420,405 ------------------------------------------------------------------------------------ Net investment income 13,080,150 383,772 11,789,517 130,515 1,189,282 26,573,236 ------------------------------------------------------------------------------------ Contributions: Employee contributions 1,475,583 1,072,943 3,811,726 612,460 1,916,234 8,888,946 Employer contributions 1,827,351 -- -- -- -- 1,827,351 Assets transferred in conjunction with mergers 638,040 264,540 543,699 158,283 152,558 1,757,120 ------------------------------------------------------------------------------------ Total contributions 3,940,974 1,337,483 4,355,425 770,743 2,068,792 12,473,417 ------------------------------------------------------------------------------------ Deductions: Benefits paid 1,410,369 824,950 2,840,259 660,418 4,532,208 10,268,204 Custodial fees 405 (1,748) (5,161) (1,378) -- (7,882) ------------------------------------------------------------------------------------ Total deductions 1,410,774 823,202 2,835,098 659,040 4,532,208 10,260,322 ------------------------------------------------------------------------------------ Net employee transfers 1,064,977 (542,587) 853,329 (460,060) (1,743,864) (828,205) ------------------------------------------------------------------------------------ Net increase (decrease) in net assets available for plan benefits 16,675,327 355,466 14,163,173 (217,842) (3,017,998) 27,958,126 Net assets available for plan benefits, beginning of year 10,411,996 6,772,474 23,845,210 4,431,429 21,280,156 66,741,265 ------------------------------------------------------------------------------------ Net assets available for plan benefits, end of year $27,087,323 $ 7,127,940 $38,008,383 $4,213,587 $18,262,158 $94,699,391 ==================================================================================== (a) Amounts are carried forward to page 10.
9 CONSECOSAVE PLAN NOTES TO FINANCIAL STATEMENTS - (Continued) 3. Changes in Net Assets Available for Plan Benefits By Portfolio, continued
For the Year Ended December 31, 1996, continued --------------------------------------------------------------------------------------- Money S & P BLH CCP Market 500 Stock Stock Subtotals (a) Portfolio Portfolio Portfolio Portfolio Total --------------------------------------------------------------------------------------- Investment Income: Interest and dividends $ 2,263,426 $ 420,835 $ 50,294 $ 23,111 $ 69 $ 2,757,735 Net realized gains on sales of investments 7,889,405 4 7,010 34,860 -- 7,931,279 Net unrealized appreciation (depreciation) in fair value of investments 16,420,405 -- 383,032 159,922 -- 16,963,359 ------------------------------------------------------------------------------------- Net investment income 26,573,236 420,839 440,336 217,893 69 27,652,373 ------------------------------------------------------------------------------------- Contributions: Employee contributions 8,888,946 1,084,152 984,264 -- -- 10,957,362 Employer contributions 1,827,351 -- -- -- -- 1,827,351 Assets transferred in conjunction with mergers 1,757,120 242,690 365,361 -- -- 2,365,171 ------------------------------------------------------------------------------------- Total contributions 12,473,417 1,326,842 1,349,625 -- -- 15,149,884 ------------------------------------------------------------------------------------- Deductions: Benefits paid 10,268,204 1,148,732 85,499 122,804 -- 11,625,239 Custodial fees (7,882) (1,286) -- 390 -- (8,778) -------------------------------------------------------------------------------------- Total deductions 10,260,322 1,147,446 85,499 123,194 -- 11,616,461 -------------------------------------------------------------------------------------- Net employee transfers (828,205) (1,109,385) 2,340,306 (396,652) (6,064) -- -------------------------------------------------------------------------------------- Net increase (decrease) in net assets available for plan benefits 27,958,126 (509,150) 4,044,768 (301,953) (5,995) 31,185,796 Net assets available for plan benefits, beginning of year 66,741,265 8,210,626 -- 1,298,166 5,995 76,256,052 ------------------------------------------------------------------------------------- Net assets available for plan benefits, end of year $94,699,391 $ 7,701,476 $4,044,768 $ 996,213 $ -- $107,441,848 ===================================================================================== (a) Amounts have been carried forward from page 9.
10 CONSECOSAVE PLAN NOTES TO FINANCIAL STATEMENTS - (Continued) 3. Changes in Net Assets Available for Plan Benefits By Portfolio (Continued)
For the Year Ended December 31, 1995 -------------------------------------------------------------------------------------------------------- Conseco Corporate Government Interest Money BLH CCP Stock Bond Equity Securities Income Market Stock Stock Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Total -------------------------------------------------------------------------------------------------------- Investment Income: Interest and dividends $ 23,933 $ 501,518 $ 520,472 $ 303,237 $ 1,376,319 $ 493,510 $ 44,672 $ 3,353 $ 3,267,014 Net realized gains (losses) on sales of investments 43,724 222,936 3,995,336 177,243 -- -- (19,228) (7,215) 4,412,796 Net unrealized appreciation (depreciation) in fair value of investments 2,369,540 603,468 1,918,265 242,134 -- -- 6,457 55,881 5,195,745 ---------------------------------------------------------------------------------------------------------- Net investment income 2,437,197 1,327,922 6,434,073 722,614 1,376,319 493,510 31,901 52,019 12,875,555 ---------------------------------------------------------------------------------------------------------- Contributions: Employee contributions 924,044 837,512 2,755,029 615,250 2,632,129 1,191,223 56,987 82,752 9,094,926 Employer contributions 2,810,580 -- -- -- -- -- -- -- 2,810,580 ---------------------------------------------------------------------------------------------------------- Total contributions 3,734,624 837,512 2,755,029 615,250 2,632,129 1,191,223 56,987 82,752 11,905,506 ---------------------------------------------------------------------------------------------------------- Deductions: Benefits paid 966,742 1,084,494 3,361,726 1,111,133 4,252,729 2,293,114 192,959 90,513 13,353,410 Custodial fees 605 3,408 7,177 2,282 185 3,483 498 544 18,182 ---------------------------------------------------------------------------------------------------------- Total deductions 967,347 1,087,902 3,368,903 1,113,415 4,252,914 2,296,597 193,457 91,057 13,371,592 ---------------------------------------------------------------------------------------------------------- Net employee transfers 305,355 (1,064,660) 711,101 (318,536) 471,332 528,753 (75,943) (557,402) -- ---------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets available for plan benefits 5,509,829 12,872 6,531,300 (94,087) 226,866 (83,111) (180,512) (513,688) 11,409,469 Net assets available for plan benefits, beginning of year 4,902,167 6,759,602 17,313,910 4,525,516 21,053,290 8,293,737 1,478,678 519,683 64,846,583 ---------------------------------------------------------------------------------------------------------- Net assets available for plan benefits, end of year $10,411,996 $6,772,474 $ 23,845,210 $4,431,429 $21,280,156 $8,210,626 $1,298,166 $ 5,995 $76,256,052 ==========================================================================================================
11 4. Subsequent Events (Unaudited) On February 28, 1997, in honor of Conseco's 15th anniversary, a special employer contribution was awarded for each employee of 15 shares of Conseco common stock which was added to each employee's account in the ConsecoSave Plan. This contribution was subject to the normal vesting rules. On May 1, 1997, the Plan was enhanced to accommodate daily valuation. The enhancements include a voice response system and the replacement or addition of several investment options. The Corporate Bond and the Equity Portfolios were replaced by the new equity and fixed income mutual funds and an asset allocation mutual fund was added. These funds are offered by the Conseco Fund Group which is managed by Conseco Capital Management, a wholly owned subsidiary of Conseco. The Equity Portfolio will be investing in selected equity securities and other securities having the investment characteristics of common stocks. The Fixed Income Portfolio will be investing primarily in investment grade debt securities. The Asset Allocation Portfolio will be investing in debt securities, equity securities and money market instruments. 12 CONSECOSAVE PLAN ITEM 27(A) - SCHEDULE OF ASSETS HELD FOR INVESTMENTS December 31, 1996
(c) (d) (e) Description of Investment Cost Current Value ------------------------- ---- ------------- Assets Held in Common/Collective Trust ConsecoSave Trust $82,169,961 $105,614,497
13 CONSECOSAVE PLAN ITEM 27 (D) - SCHEDULE OF REPORTABLE TRANSACTIONS For the Year Ended December 31, 1996
Current Expenses Value of Identity Description Number Incurred Cost Asset on of Party of of Purchase Selling with of Transaction Gain Employee Involved Transactions Transactions Price Price Transaction Asset Date (Loss) Withdrawals - ------------------------------------------------------------------------------------------------------------------------------------ Various Employee Withdrawals 25 -- -- -- -- $11,625,239 -- $11,625,239
14 CONSECOSAVE PLAN SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees of the Plan have duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized. CONSECOSAVE PLAN Dated: June 20, 1997 By: /s/ ROLLIN M. DICK ------------------- Rollin M. Dick, Trustee 15 EX-23 2 EX-23 EXHIBIT 23 CONSENT OF INDEPENDENT ACCOUNTANTS We consent to the incorporation by reference in the registration statements of Conseco, Inc. on Form S-8 (File Nos. 33-57931 and 33-58710) of our report dated June 17, 1997, on our audits of the financial statements and supplemental schedules of the ConsecoSave Plan as of December 31, 1996 and 1995, and for the years then ended, which report is included in this Annual Report on Form 11-K. /s/ COOPERS & LYBRAND L.L.P. ---------------------------- Coopers & Lybrand L.L.P. Indianapolis, Indiana June 19, 1997 -----END PRIVACY-ENHANCED MESSAGE-----